Looking to the future: How the AEC industry views AI

Unanet recently released its 2024 AEC Inspire Report. In this blog series, we’ll explore the topics and themes it covers and how your AEC firm can use this information to gain a competitive advantage.

While the roots of artificial intelligence (AI) stretch back decades, its popularity has surged in recent years, propelled by its accessibility, user-friendliness, and widespread discussion. For the architecture, engineering, and construction (AEC) industry, this technological revolution brings both challenges and opportunities.

Unanet’s 2024 AEC Inspire Report recently surveyed some of the top minds from the industry and the research revealed a lot about how those leaders view AI. Let’s explore how AEC is adopting AI, the types of AI being utilized, and what the future holds.

The current landscape of AI in AEC

The 2024 AEC Inspire Report highlights the stark reality that for AEC firms, adopting emerging technologies such as AI is no longer optional. It's a prerequisite for survival and growth. AI's capabilities extend far beyond generating images or content. From natural language processing (NLP) to deep learning, AI offers powerful data-related functionalities such as gathering information for proposals and predicting project outcomes.

Over half of the report’s respondents are already using AI within their organizations. Another third are open to incorporating AI but have yet to do so. Only a small fraction remains resistant to this technological shift.

The respondents either use or plan to use AI across various business areas, indicating a mix of generative, computational, and possibly even predictive capabilities.

Adoption across different company sizes

The size of a company plays a significant role in AI adoption. Small companies are less likely to be using AI, but most are open to it. In contrast, construction firms are leading the charge, with nearly twice the adoption rate of AI compared to their counterparts in architecture and engineering.

Construction firms often face numerous on-site challenges that can be mitigated through AI integration. These firms are about twice as likely to have fully adopted AI with formal organizational governance compared to architecture firms. Consequently, construction firms frequently express optimism about AI's positive impact on their business. This sector-specific trend may be attributed to the immediate, tangible benefits AI offers in simplifying complex construction processes.

The ability to predict project outcomes accurately and manage resources efficiently gives firms a competitive edge.

Key areas of AI application

Going forward, AI has multiple use cases within the AEC industry, including:

• Business development and marketing: AI can help firms identify and pursue new opportunities, generate leads, and build relationships with potential and existing clients. This will require analyzing market trends, customer behavior, and competitor activity while providing recommendations for strategic next steps.
• Predictive analytics: AI can forecast project outcomes, such as costs, schedules, quality, and risks – all using historical data and real-time information. AEC firms can then leverage these insights to anticipate and mitigate potential issues, improve project performance, and increase profitability.
• Client engagement: Effective client communication is another area where AI can have an impact. AI can allow firms to better understand client needs and preferences while helping to deliver personalized solutions. This will involve interactive visualizations, scenario simulations, and feedback collection throughout the project lifecycle.
• Risk management: AI can also reduce exposure to various types of risks, such as risks related to safety, legal, financial, and reputation. Activities supporting this include monitoring site conditions, detecting anomalies, and alerting relevant stakeholders, thereby preventing accidents and ensuring compliance.

Benefits of AI in AEC

As with any new technology, there must be a compelling answer to the question of “So what?” for AEC firms to incorporate it into their overarching business strategy. Beyond viewing AI as the technological flavor of the month, what are the actual better business outcomes AEC firms using it correctly can expect to gain?

With the right implementation approach, here’s how AEC firms will stand to benefit in the future when using AI:

1. Increased efficiency

AI can automate repetitive tasks, allowing human resources to focus on more strategic activities. For instance, AI-powered tools can handle mundane tasks like data entry, freeing up time for more critical analysis and decision-making.

2. Improved decision-making

AI can analyze vast datasets to identify patterns and trends that may not be immediately apparent to human analysts. This ability can lead to more informed decision-making processes, ultimately improving project outcomes.

3. Create a competitive advantage

Firms that adopt AI technologies are often better positioned to stay ahead of the competition. By leveraging AI, these companies can offer more innovative solutions, thereby attracting more clients and retaining existing ones.

Challenges and considerations

While the benefits of AI are substantial, there are also challenges for AEC professionals to consider as technological developments move quickly:

• Data security: With the increased use of AI comes the need for robust data security measures to protect sensitive information.

• Cost: Implementing AI can be expensive, particularly for smaller firms. However, the long-term benefits often outweigh the initial investment.

• Ethical concerns: AI must be used responsibly to avoid issues like bias in decision-making processes.

The future of AI in AEC

The 2024 AEC Inspire Report indicates that firms embracing AI and other emerging technologies are better positioned to thrive in an increasingly digital world. These firms are not only operating efficiently today but are also preparing for the challenges and opportunities of tomorrow.

In our next post, we’ll take a closer look at the role of forecasting in the AEC industry. Until then, download the entire 2024 AEC Inspire Report here. 

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